joshp975's Blog: All Categories

It used to be anyone who wanted to could be a mortgage loan officer, and everyone was.  You didn’t need a background check, you didn’t need an individual license, or even to take continuing education classes.  Its funny how things change.  Today's loan officer is much more knowledgeable, and much more a consultant, or finical analyst than before.  Those who have made it through the rough times in the industry are now subject to background checks, must apply for individual licenses with states they choose to be licensed in, and are required to take continuing education classes every year, just to maintain their license.  Also, since we're all individually license, a bad loan officer can be reported, and it is public knowledge if someone…

Everyone wants to have the biggest and best house on the block, and there's nothing wrong with that until its time to get an appraisal done.  If you've put additions on your house, or any kind of upgrade that your neighbors dont have you might find yourself in trouble come appraisal time.  Just recently I had an appraisal done on a property in a great neighborhood.  The house was the nicest in the neighborhood...but there was a catch.  The house had an in-law suit over the garage.  Ordinarily you'd think this would help the property value.  When the appairser did the appraisal, he had to note that this house was a "unique" property since no other property in the neighborhood had an in-law suit.  Since investors don't want to lend on unique properties, this…

Beleive it or not, 100% financing is still available.  The USDA loan program offers up to 100% financing in rural areas all over Maryland, DC and Virginia.  All you need to do is make sure the property you're intersted in buying is USDA approved.  You can check with your local mortgage consultant, or check the USDA website to see if you're property qualifies.  Most people would be suprised what qualifies.  For instance, properties in both Upper Marlboro and Temple Hills Maryland, which most people wouldnt think of as rural,  would qualify for the USDA program.

In order to qualify, your property must be USDA approved, which can be check on their website, or by your local mortgage consultant.  Also, you must have a 620 credit score, and a good debit to…

Over the next few weeks several banks are rolling out new Community Reinvestment Act (CRA) loan programs.  While the guidelines and terms are still rolling out, these loans are attempting to help low and moderate income families refinance their homes.  Some banks may even go up to 100% financing for the loans.  So far, only SunTrust has offered the program, but Bank of America, and others will soon follow.  As more information becomes available I will continue to update my blog.  In the mean time, check with a loan officer to see what other banks come out with as part of their CRA programs.

Need an experience loan officer?

Need more information on over quity loans?

People with second mortgages are having trouble getting new first mortgages these days.  So what are they hold ups?  The first issue that comes up is your first and second mortgage combined loan to value ratio.  Since value's have dropped over the past few years people are finding that they are upside down, or close to it between their first and second mortgages.  With most second mortgage lenders looking for you to be at and 85% CLTV (combined loan to value ratio) it makes getting your second mortgage subordinated pretty tough. 

So what options do you, as the borrower have?  First option is to cut the balance on your line of credit to fit the guidelines.  This can be done by calling up your bank and asking them to lower the credit limit.  If you are…

There are many reasons why your settlement may be delayed.  The first reason would be the appraisal.  Since the HVCC law was passed back in July appraisals have taken longer to get done.  If the appraisal comes in low, then the loan may need to be restrucruted and re-underwritten.  This will add time to the mortgage process, and could end up delyaing closing.  The second reason is the new HERA laws  With the new laws in place we have to wait anywhere from 4-7 days to order an appraisal once the lender receives the loan file.  With already slow underwriting times, this just adds to the time.  Also, as part of the new HERA laws if your appraisal comes in low and the loan terms change, the new terms must disclosed, and a waiting period is put in place for…

The time for first time homebuyers to purchase a home, and still get their 8,000 tax credit is approching.  As of now, if you are a first time homebuyer you can get a tax credit for either 10% of the sales price up to 8,000.  A home buyer will have up to November 30th to close on the house in order to collect their tax credit. However, the credit isn't given at closing, it's given to you when you file your annual taxes.  With underwriting times running longer than they were a few weeks ago, now would be the time to start putting in purchase offers in order to close before the end of November.  This is a great opportunity that everyone who is elligable for should try to take advantage of.

More information on the 8,000 tax credit?

Need a experienced…

A big question facing new homebuyers is "what can I qualify for?"  When lenders are looking to approve a loan they're looking to see how much debt your income will carry, this is referred to as your debt to income ratio, or DTI.  Ideally, lenders want to see your debt ratio at 45% or less.  This means, your total montly payments on debt (car payments, credit cards, loans, and mortgage) must be 45% or less of your gross montly income.  There is is a little leeway if you have high credit scores, or have a good amount of reserves in the bank, but beng conservative 45% should be your target debt ratio.

One thing to remember is that what you can qualify for, and what you can afford are 2 seperate things.  When shopping for your mortgage, make sure your…